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This paper compares the equilibrium outcomes from a recently developed model of procurement competition with …
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We consider two mechanisms to procure differentiated goods: a request for quote and an English auction with bidding credits. In the request for quote, each seller submits a price and the inherent quality of his good. Then the buyer selects the seller who offers the greatest difference in quality...
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differentiation into a standard procurement setting. Both institutions yield identical surplus for the buyer, a difference from prior …
Persistent link: https://www.econbiz.de/10013116244
I study the interaction between optimal procurement and outsourcing of production in small industries. First, two …. Then the buyer designs the procurement mechanism and sellers who outsourced production subcontract with their respective …
Persistent link: https://www.econbiz.de/10010340964
For a repeated procurement problem, we compare two stylized negotiating cultures which differ in how the buyer uses an … entrant to exert pressure on the incumbent resembling U.S. style and Japanese style procurement. In each period, the suppliers … are privately informed about their production cost, but only the incumbent can influence the buyer s procurement mechanism …
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A principal wants to procure a discrete number of homogeneous units from a finite set of agents. Each agent has an increasing and convex cost function, whose exact shape is unknown to the principal. Utility is quasilinear in money. We characterize the set of mechanisms that are strategy-proof...
Persistent link: https://www.econbiz.de/10012833052
In government procurement auctions of construction contracts, entrants are typically less informed and bid more … encourage entry in government procurement auctions and thus increase competition …
Persistent link: https://www.econbiz.de/10012726204